Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

2.
Objectives of this Study
1) To review and synthesize the existing literature
on celebrity endorsement.
2) To study the differing practices in nature and
quantity of celebrity endorsement between
developed and emerging markets.
3) To develop set of propositions using dimension
of culture to explain differing practices.
4) To contribute to the literature by bringing in the
notion of congruence between celebrity and
consumer as a driver of effectiveness of
celebrity endorsement.
11/06/2014 2
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

5.
Celebrity
Endorsement…
• What started as a trickle in 1980s emerged
as a phenomenon in 1990s with companies
extensively using celebrities to
communicate their brands to consumers.
• The rise in celebrity advertisement has been
attributed to cluttering of media.
• Increase in the number of brands advertised
on TV from around 3,000 a decade ago to
almost 11,500 (India Today – December
2004).
11/06/2014 5Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

6.
• Research conducted by leading Indian
research agency IMRB indicated that 86 %
of the respondents say the most prominent
advertisement that they remember has a
celebrity in it (The Economic Times – 28
March, 2008).
• Celebrity endorsement market is considered
to be worth more than Rs. 1,000 crores
business(The Economic Times – 3 February,
2010).
11/06/2014 6
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

7.
• With the onset of television as a powerful
media for mass advertising in India in 1980s,
a number of Indian brands like Vimal,
Thums Up and Gwalior used star appeal
during their early days of mass advertising.
• The role of celebrities in Indian context can
be highlighted with the example of Coca
Cola, who earlier never used celebrities
internationally, but started using Indian
celebrities for its advertisements in India in
1990s.
• The endorsement of Hyundai Santro car by
leading actor Shah Rukh Khan has worked
well for the brand as well as for the actor.
He was endorsing three brands, went on to
endorse more than 30 brands in 2009 (The
Hindustan Times –17 September, 2012).
11/06/2014 7
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

8.
Not all Celebrities
Endorsement have
been Successful
• When Hindustan Unilever Limited (HUL)
– Indian subsidiary of Unilever - tried to
use Shahrukh Khan for endorsing Lux,
by canvassing the image of a metro-
sexual man, the promotion did not turn
out to be very successful.
• Shahrukh Khan’s association with
Videocon, a leading white good
manufacturer, had to be discontinued as
the promotion did not give adequate
results.
• Leading automobile company Maruti
Suzuki was unable to exploit the ‘Big B’
status of Amitabh Bachchan for its
‘Versa’ brand.
11/06/2014 8
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

9.
• The list of unsuccessful examples suggest
that it will be wrong to consider celebrity
endorsement as an effective response for all
situations in spite of the intensity of
involvement people have with celebrities in
India.
• In order to enhance the effectiveness of
celebrities, it has been suggested that
marketers need to establish the link
between the product and celebrity by
considering the type of product.
11/06/2014 9
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

10.
• However, the utility of this theory –
often explained as congruence between
product and celebrity - in explaining the
effectiveness of celebrity endorsement
is limited.
• Shahrukh Khan endorsing Hyundai
Santro and Amitabh Bachchan
endorsing Versa. While both the brands
belong to same product category and
are endorsed by the leading Indian
actors having pan-India appeal, the
results have been quite different. Santro
became the second largest selling car in
India within four years of its launch.
11/06/2014 10
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

11.
Paper Attempts
• Use the lens of culture to develop
propositions on how customer
attitudes towards celebrity
endorsements is a function of
cultural parameters.
• Using culture to explain the
congruence between celebrity and
consumers for elaborating celebrity
endorsement in Indian markets.
11/06/2014 11
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

12.
How the Paper
is Organized
• First, the author examine the literature
on celebrity endorsements to
understand the underlying theoretical
underpinnings and identify the gaps and
contradictions.
• Next, summarize the dimensions of
culture that are likely to influence the
impact of celebrity endorsement on
customer attitudes, with reference to
the Indian context.
• Finally, the author develop propositions
that consider how different dimensions
of culture influence the relationship
between celebrity endorsements and
customer attitude.
11/06/2014 12
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

13.
Literature Background
• Endorsement by celebrities is not a new
phenomenon, however today celebrity
endorsement has become one of the
most popular forms of advertising (Choi
& Rifon, 2007) including in the non-
profit sector (de los Salmones,
Dominguez, & Herrero, 2013).
• If you are targeting youth, take a new
star and if you are talking to a family
audience use an established star.
Health-oriented brands generally pick a
sportsperson while beauty brands pick
up a Bollywood diva. (Economic Times,
Oct 2014).
• Aresearch states that the target
audience age group of 15-30 gets
influenced first by cricketers, then
Bollywood stars and only then music,
festivals and food (Harish, 2004).
11/06/2014 13
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

14.
Trends - Celebrities
active on Facebook,
Twitter have an edge
• With social media emerging as one of
the most popular hangouts for Indians,
brand endorsement deals in the country
are getting hugely influenced by how
active celebrities are on Twitter,
Facebook, Instagram and blogs.
• "Celebrities who engage actively on the
social media space are getting paid at
least 25%-30% higher than those who
don't, even if the latter have huge mass
connect," said Vinita Bangard, promoter
of talent management firm Krossover
Entertainment, which represents
Priyanka Chopra and Shah Rukh Khan.
11/06/2014 14
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

15.
Trends - Celebrities
active on Facebook,
Twitter have an edge
• Ex: Farhan Akhtar, who endorses
Coca-Cola, and Salman Khan, who is
the face of Thums Up, not only
feature on the brands'
advertisements but also are
regularly tweeting and posting
photos of themselves with the
brands they promote.
• Many brands now go for exclusive
social media endorsement deals at
just about 10%-20% fees of a
television endorsement deal.
11/06/2014 15
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

17.
Trends - Celebrities active
on Facebook, Twitter have
an edge
• "The socially active ones have a clear
edge not only in terms of higher fees
but also in getting more endorsement
deals."
• Chopra, with over 7 million followers on
Twitter, is a hot favourite, along with
stars like Amitabh Bachchan, Shah Rukh
Khan, Aamir Khan and Salman Khan
who all have more than 8 million
followers.
• PepsiCo used hugely popular actor
Ranbir Kapoor only on social media
earlier this year for its biggest ad
platform — the IPL T20 cricket
tournament, though cricketers MS
Dhoni and Virat Kohli were shown
extensively on television ads.
11/06/2014 17
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

18.
Benefits of
Celebrity
Endorsement
• To grab customer attention for
communicating message to consumers
( Baker & Tagg, 2001).
• To remember the message and brand
name (Agrawal & Kamakura, 1995;
Erdogan, 1999; Freidman & Friedman,
1979).
• Celebrities bring their own distinctive
images to the advertisement and its
associated brand and can create,
enhance and change brand image
(Erdogan, 1999).
• According to Agrawal and Kamakura
(1995), when a celebrity is paired with a
brand, his/her image helps shape the
image of that brand in minds of the
consumer.
11/06/2014 18
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

20.
• The Source Credibility Model proposes that the
effectiveness of a message depends on perceived
level of expertise and trustworthiness in an
endorser (Ohanian, 1991).
• On the other hand, in the Source Attractiveness
Model, it is contended that the effectiveness of a
message depends on similarity, familiarity and
liking for an endorser (McGuire, 1985).
• The Product Match-Up Hypothesis maintains that
messages conveyed by celebrity image and the
product message should be congruent for
effective advertising (Kamins & Gupta, 1994).
• During celebrity endorsement, consumers have a
perceived image about any celebrity endorser,
and this image affect is transferred to the
endorsed brand (Atkin and Block, 1983).
Construct Models
11/06/2014 20
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

22.
Culture
• Markus and Kitayama (1991) have argued
that culture has a profound impact on the
dominant self conceptions that exist within
a given culture.
• Previous research in marketing and
consumer behavior has found culture to be
an important determinant of consumer
behavior (Aaker & Lee, 2001; Farley &
Lehman, 1994).
• There is increasingly the recognition that
national cultural values affect the cognitive,
the emotional and the motivational
patterns dominant of customers in a given
culture (Markus & Kitayama, 1991).
11/06/2014 22
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

23.
• Since these dimensions of culture proposed
by Hofstede (1980) were published,
researchers have confirmed them in various
cultures around the world and have used
them to analyze many marketing issues,
such as variations in symbolic consumption
behavior, consumer responses to
advertising, and marketing management
practices in various cultural settings.
• In fact, the congruence between the
celebrity and the consumer matters in
addition to congruence between celebrity
and product.(Unexplored area – Choi &
Rifin, 2012).
11/06/2014 23
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

24.
Dimension of
Culture
• Culture has long been believed to be the
force that influences people in a society to
follow the norms of their collective identity.
• Hofstede (1980) treated culture as the
collective programming of the mind that
distinguishes the members of one group or
category of people from another.
• He defined culture as the interactive
aggregate of common characteristics that
influence a human group’s response to its
environment.
• There have been a number of studies to
identify core values across societies, and
those values that differ between societies
and are a result of local cultural differences
(Burton, 2009).
11/06/2014 24
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

25.
• Hofstede (1980) presented one of the first empirically
validated typology of culture across different nations.
• Hofstede used 116,000 questionnaires from over
60,000 respondents in seventy countries in his
empirical study (Hofstede, 1984, Hofstede,
1991 and Hofstede, 2001). He created five dimensions,
assigned indexes on each to all nations, and linked the
dimensions with demographic, geographic, economic,
and political aspects of a society (Kale and Barnes,
1992), a feature unmatched by other frameworks.
• He identified five dimensions of culture on which a
country’s culture could be placed. He named them as
power distance, uncertainty avoidance, individualism-
collectivism, and masculinity-femininity.
• Hofstede added a new dimension of long-term versus
short-term orientation to extend the number of
dimensions to five.
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 6111/06/2014 25
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

26.
• The typology of cultural dimensions
proposed by Hofstede is used for this study
since it has been extensively used in
marketing and advertising literature to
study cross-national differences (e.g., Singh,
2004; Petersen, Kushwaha, & Kumar, 2013).
• Choi et al. (2005) stated that differences in
consumer dispositions towards celebrity
endorsements are likely to lead to observed
cross-cultural differences in the use of this
technique.
• As most of the models of celebrity
endorsement process have been developed
in the context of United States, it was
decided to use India and United States as
these societies differ considerably on many
dimensions of culture.
11/06/2014 26
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

27.
• Hofstede found that two countries can
be closely similar in a particular cultural
dimension and highly dissimilar in
various other dimensions.
• For example, India and the United
States are greatly similar in the
uncertainty avoidance index(40/46), but
exceedingly dissimilar in the
individualism index (48/91).
• Hofstede reported differences between
the Indian and American cultures on
three of these dimensions: power
distance, individualism-collectivism, and
long-term versus short-term
orientation.
11/06/2014 27
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

29.
Power Distance
• Hofstede defined power distance as “the
extent to which the less powerful members
of institutions and organizations within a
country expect and accept that power is
distributed unequally”.
• A high power distance ranking indicated
inequalities of power and wealth while a
low power distance ranking indicated that
society de-emphasizes the differences
between citizen power and wealth.
• India has a score of 77 on Power Distance
Index against the United States score of 40.
• India’s score of 77 indicates a high level of
inequality of power within the society
whereas US score 40 is indicative of greater
social equality.
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 6111/06/2014 29
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

31.
Individualism-
Collectivism
• Collectivism pertain to societies in which the ties
between individuals are close: it pertains to
societies in which people from birth onwards are
integrated into strong, cohesive in-groups, which
throughout people’s lifetime continue to protect
them in exchange for unquestionable loyalty.
• A high score on Individualism Index indicates that
individuality and individual rights are
emphasized within the community.
• The United States has score of 91 on
Individualism Index, suggesting a society with
high individualistic attitude while India’s score on
Individualism Index is 48 indicating a society with
high collective orientation.
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 61
11/06/2014 31
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

33.
Long versus Short
term Orientation
• Long-term orientation characterizes cultures
which place more importance on values
associated with future orientation while
short-term orientation cultures place more
importance on values associated with past
and present orientations.
• India’s score on Long-Term Orientation
Index is 61 in comparison to world’s average
of 48, indicating a culture with long term
orientation. On the other hand, United
States score is 29 reflecting a culture with
short term perspective.
• Since the cultural context of Indians
evaluating celebrities is markedly different
from that of an American, our premise,
therefore, is that there should be
differences relating to the impact of
celebrity advertisement.
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 6111/06/2014 33
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

35.
Proposition
• While developing the propositions using
dimensions of culture, we have
considered that congruence between
the celebrity and the consumer will lead
to better effectiveness of celebrity.
• Congruence conviction was also
supported by balance theory (Heider,
1958) which pointed out that an
individual prefers information which
does not trouble her internal
equilibrium.
• Over the years, many streams of
research in marketing like brand
extension, cobranding, and advertising
have shown that congruence is a
positive factor and it is preferable over
incongruence (Fleck & Quester, 2007).
11/06/2014 35
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

36.
Popularity of Celebrity..P1
Popularity of celebrities-
• As per Hofstede (2001) study, the power
distance index score for India is 77 which
will be considered significantly higher than
United States score of 40, and thus pointing
towards a culture of high power distance.
• A culture of high power distance signifies
inequality in the society.
• The existence of class and caste manifests
the inequalities in this dimension.
• Hofstede (2001) pointed that these
inequalities can occur in area like prestige,
wealth, and power and generally values
about inequality are coupled with values
about the exercise of power.
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 6111/06/2014 36
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

37.
Referent Power
• French and Raven (1959) provided five
bases of social power namely reward power,
coercive power, legitimate power, referent
power, and expert power.
• Hofstede (2001) surmised that more
referent power which is based on personal
charisma of the powerful and identification
with him or her by the less powerful, will
prevail.
• In India, which is a stratified society, persons
belonging to lower classes have deference
towards the members of higher ranks.
11/06/2014 37
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

38.
• The mental programming for their
hierarchical roles gets affected and
strengthened by their exposure to societal
norms like those involving relationship
between parents and child and of teacher
and pupil.
• People take successful artists and athletes
as having referent power and identify
themselves with them in various ways like
idolizing them, revering them, and imitating
them and their life-styles.
11/06/2014 38
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

39.
• This is less likely to happen in a society that is low on power
distance where idolization, revering and identification will be
less effective.
• Consumers see the endorsement by celebrities in congruence
with this manifestation of referent power.
11/06/2014 39
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

40.
P1: Attitude towards a celebrity will be more positive in a
society having higher power distance in comparison to society
having lower power distance.
Popularity of
Celebrity
Society of High
PD
Attitude
towards
Celebrity will
be more
Positive
Referent Power
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 61
11/06/2014 40
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

41.
P1: Supporting
facts
• In Indian market, we find that the
rise in celebrity endorsements has
been phenomenal in decade to
2010.
• In 2001, 25 % of all TV
advertisements carried a known
face. By 2008, this had grown to
60 % and continues to grow (The
Economic Times, 3 February,2010).
• In 2007, only 88 brands used
celebrities, while 98 brands used
celebrities to push their products in
2008 (The Economic Times, 25
March, 2009).
11/06/2014 41
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

42.
• Coming to online retail stores, Snapdeal has
created 50 commercials with 28 celebrity
endorsements for their Diwali Bumper Sale
campaign. Ex: Pulkit Samrat: The New Brand
Ambassador Of Snapdeal.com
• On the other hand, Flipkart’s ‘The Big Billion
Day’ ad campaign could be seen regularly
played across all television network
channels during the previous month.
11/06/2014 42
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

43.
• Flipkart, signed up actor Ranveer Singh to
endorse its in-house contemporary
jeanswear brand Roadster.
• LimeRoad, an online fashion brand that
raised $15 million in a second round of
funding in May, has inducted Neha Dhupia.
• Jabong launched a first of its kind event, the
India Online Fashion week, it roped in
actress Yami Gautam, who played the lead
female role in Vicky Donor, as a brand
ambassador for the event.
11/06/2014 43
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

44.
P1: Supporting
facts
• The last few years have seen companies like
Hero Honda, Airtel, Pepsi, and Sahara
Homes employing multiple celebrities to
endorse their product.
• The advertising scene in United States
where inspite of increase in incidence of
celebrity advertising, only about 25 % of
advertisements feature celebrities (Money
et al., 2006).
• Practitioner’s persistent use of celebrity
endorsers in emerging markets like India
suggests that celebrity endorsement is likely
to prove an effective advertising strategy in
these markets (Amos, Holmes, & Strutton,
2008).
• All of the above support proposition 1.
Celebs jam Hero Honda ad
The two-wheeler major launches a
music video on its 25th anniversary
with film stars, cricketers and an
Olympian. (Business Standard,
September 19, 2008)
Bollywood glamour idols Hrithik
Roshan and Priyanka Chopra,
sensational cricketers Virender
Sehwag, Irfan Pathan, Suresh
Raina, Gautam Gambhir and Ishant
Sharmaas well as ace shooter and
2004 Athens Olympics silver medallist
Rajyavardhan Rathore.
11/06/2014 44
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

45.
Multiple Endorsement by
Celebrities…. P2
• In India, we see that a number of celebrities are
engaged in multiple endorsements but the same is
not true in case of US.
• Think of Sachin Tendulkar. He means Pepsi in soft
drinks, Boost in malted beverages, MRF in tires, Fiat
Palio in cars, TVS Victor in two-wheelers, Colgate Total
in toothpastes, Britannia in biscuits, Visa in credit
cards & Airtel in mobile services. Clearly, an overload
of brands and categories associated with one star.
• Bollywood A-listers Shah Rukh Khan and Ranbir
Kapoor emerged the only two celebrities in the
country with more than $100-million valuation in the
first ever celebrity brand valuation study in India.
• Cricketers MS Dhoni and Virat Kohli took the next two
positions, though well below Khan and Kapoor,
according to valuation done by US consultancy firm
American Appraisal. ( ET Bureau Nov 4, 2014).
• In a high power distance country like India, generally
the celebrities in India have high reverence factor
and there prevails a larger than life status for the
celebrities leading to celebrities having greater
referent and legitimate power.
11/06/2014 45
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

48.
• Often this larger than life status leads the celebrities to
hold command over not only their area of expertise but
over a range of other areas as well.
• As a result, the celebrity is not seen as expert in one
area only but one can associate these celebrities with
multiple domains.
• If the celebrities endorse products for which the
congruency between product and celebrity may not be
present, it does not diminish the effectiveness of
celebrity because the congruence is established
between consumer and celebrity’s persona.
• Thus one can expect that celebrities in high PDI
countries like India will endorse more number of
brands in comparison to celebrities in low PDI countries
like United States. Therefore, the author proposes
11/06/2014 48
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

50.
P2: Supporting
facts
• At one point of time, Amitabh Bachchan was
endorsing more than 50 brands across disparate
product categories.
• Currently Shahrukh Khan and Mahindra Singh
Dhoni (captain of Indian cricket team) are leading
endorsers with each endorsing close to 20
brands.
• As per estimates by AdEx, Shahrukh Khan
endorsed 17 brands in 2009 while Dhoni led the
year with 19 endorsements.
• The leading Bollywood ladies like Katrina Kaif and
Priyanka Chopra endorsed 12 and 10 brands
respectively (The Economic Times – 3 February,
2010).
• The power distance dimension of culture
provides an explanation for the same in
emerging countries like India whose score (77)
on PDI is different from United States(40).
11/06/2014 50
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

51.
Impact of Regional
Celebrities…P3
• The explanation for strong acceptance of celebrities in
the areas from where they hail can be attributed to the
individualism/collectivism dimension of the culture.
• In a collectivist society like India self-image is based on
interconnectedness of people, fitting in, and
interdependence with others.
• Ex: Consumer products companies from HUL to ITC and
Parle Products to Wipro Consumer Care are
accelerating signing endorsement deals with regional
actors, as they seek to connect better with the masses
in different states.(Economic Times Feb 7, 2011).
• Biscuit maker Parle Products dropped superstar Aamir
Khan and hired Bhojpuri actor Ravi Kishan for its
Monaco brand.
• Wipro Consumer Products, which uses Katrina Kaif for
Yardley and Juhi Chawla for Safe Wash detergents
nationally, has just signed on Tamil and Telugu film
actress Tamanna for one of its soap brands.
11/06/2014 51
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

52.
• India having a score of 48 on
individualism index signifies a nation
of collectivist nature.
• In case of collectivist culture, there is
emotional dependence on groups,
organizations, or other collectivities.
• Children are taught to think in terms
of “we” and consequently, the
emphasis is on belonging and one
builds ties with members of in-
groups (wherein people share as
much as possible the same
background).
11/06/2014 52
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

53.
• Cooking and hair oil firm Marico, for example,
has Anushka Sharma, Vidya Balan and
Chitrangada Singh as all-India endorsers for its
Parachute and Nihar brands besides a slew of
regional actors: Kavya Madhavan for Kerala,
Bhumika Chawla for Andhra Pradesh, Tamanna
for Tamil Nadu and Rituparna Sengupta for the
East
• When a celebrity endorses a brand, other
members who are from same social network
or consider themselves to be from same in-
group, consider it as their obligation to
support the celebrity. Therefore for celebrity
endorsement, where a strong regional
identification is associated with the celebrity,
the consumers in that particular region show
solidarity with the celebrity.
• As a result, a brand endorsed by a celebrity
often finds strong support in the area from
where the celebrities hail.
11/06/2014 53
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

55.
P3: In case of endorsement by local celebrity, the attitude towards celebrity
will be more positive in a society having higher collectivism in comparison to
society having higher individualism
Impact of
Regional
Celebrity
Society of High
Collectivism
Attitude
towards
Celebrity will
be more
Positive
Emphasis on belonging
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 61
11/06/2014 55
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

56.
P3: Supporting
facts
• When Mahendra Singh Dhoni became
the number one batsman and captain of
Indian cricket team, it led to spurt in
sales of products endorsed by him in
Ranchi – capital of his home state
Jharkhand.
• Dhoni struck an emotional chord with
the people of his state and this
impacted the sale of his endorsed
products – from motorcycles to fans.
• Similarly, although Katrina Kaif was the
most searched celebrity on internet
across the country, Aishwarya Rai
topped the search charts in Konkan
region states like Goa and Karnataka
(The Economic Times – 26 July, 2009)
from where she hailed.
11/06/2014 56
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

57.
• Different stars appealed to different
geographic groups of customers (eg.,
Aishwarya Rai had highest recall in
down south as against ShahRukh
Khan who had little appeal there.
• In early 1980s, when leading actor
Dharmendra endorsed Rajdoot
motorcycle, its sale increased
significantly in state of Punjab, from
where Dharmendra hailed.
11/06/2014 57
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

58.
• The trend has been realized by
corporates in India who have used
regional stars for promoting their
products in particular states while
continuing with national level stars for
national campaigns.
• Such examples include Dabur using Ravi
Kishan in northern state of Uttar
Pradesh, Pepsi using Simran for Kurkure
in South India, and Emami using Surya
for Fair and Handsome in state of
Andhra Pradesh.
• Madhavan endorsing Pepsi in southern
India or Sachin Tendulkar endorsing in
India.
11/06/2014 58
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

59.
• Another interesting example would
be of Steve Waugh campaigning for
Tourism Australia in India since he
was one of the popular celebrities
from Australia and could carry the
message of Australia as a tourist
destination.
11/06/2014 59
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

60.
Sorry, Angelina: Consumers
Aren't Swayed by Celebrity
Endorsements
(Mark J. Miller on June 14,
2011)
• http://www.brandchannel.com/
home/post/2011/06/14/Celebrit
y-Endorsements-Study-
Adweek.aspx
• A new study from
Adweek/Harris Interactive shows
that consumers don’t give a rip if
a celebrity is telling them to buy
a product or not.
“When a product or service is
endorsed by a celebrity, more
than three-quarters answered
that it has no impact on their
intent to buy,” Adweek reports.
“Just 4 percent said it makes
them more likely to purchase.”
Endorsement for Louis Vuitton
11/06/2014
60
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

61.
Celebrity
Endorsement in Crisis
Management..P4
• There are many examples where companies
in India have used celebrities to overcome
the crisis related with their brands.
• The long-term orientation dimension of
culture where India has a score of 61 on
Long-Term Orientation Index provides some
indication for explaining the use of celebrity
endorsement in turning around the crisis
involving brand.
• In case of long term orientation country like
India where relationships ordered by status
prevails and this order is observed.
• The celebrity endorsers capitalize on these
relationships built over the years and are
able to reduce the negative feelings towards
the brands.
11/06/2014 61
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

62.
• The explanation for the same can be
based on McCracken’s work (1989) who
theorized that celebrities bring their
own culturally constituted meanings to
the endorsement process.
• The fact that in long term orientation
culture, people do not have probabilistic
thinking (Hofstede, 2001) and in case
they believe the celebrity endorser, they
have full confidence in the celebrity as
well as brand.
• Accordingly companies in India employ
celebrity endorsers for countering the
negative news about brands and it turns
out to be effective. Thus, we propose
11/06/2014 62
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

63.
P4: When a celebrity endorses a brand which is facing negative news, the
attitude toward a brand will turn more positive in a society having long term
orientation in comparison to society having short term orientation
Celebrity
Endorsement in
Crisis
Management
Society of High
LTO
Attitude turns
Positive for
Brand
Relationship built over years
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 61
11/06/2014 63
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

64.
P4: Supporting
facts
• Celebrity is an omnipresent feature of
society, blazing lasting impressions in
the memories of all who cross its path -
Kurzman et.al (2007).
• When a neutral research group (Center
for Science and Environment, an
independent public interest group) in
India(2003) alleged that soft drinks
manufactured by Coca Cola contained
harmful pesticide residue, the company
responded by bringing in celebrity
endorsement.
• Aamir Khan, a leading actor - who
enjoys a tremendous fan-base in India,
appeared in a television commercial
defending Coke and gulping a bottle of
the beverage while endorsing Coke’s
security standards.
11/06/2014 64
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

65.
• Cadbury faced a major
embarrassment in 2004 when
worms were found in some of its
packages in India. Cadbury tried to
overcome the worm infestation
controversy by vouching for its
quality and safety standards.
However as the public was not
convinced by company’s assurances,
Cadbury turned to Amitabh
Bachchan to bail it out.
• Amitabh Bachchan reinforcing the
point that Cadbury had made
substantial changes in packaging and
was paying attention towards its
storage conditions in retail outlets.
11/06/2014 65
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

66.
Negative
Information about
Celebrity…P5
• Amos, Holmes, and Strutton (2008),
through a meta-analysis, found that
negative information about the
celebrity exercised largest impact on
celebrity endorsement effectiveness.
• However, in India, it has been seen that
even when celebrity endorsers go
through a bad patch which may lead to
a drop in their star power, companies
continue with them.
• In such cases, the explanation for the
phenomenon can be, once again,
provided by power distance as well as
longterm orientation dimension of
culture.
11/06/2014 66
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

67.
• Celebrities who are high on status and are
able to build franchises with their fans and are
often able to sustain it because for individuals
with a long term orientation in a country like
India, relationships ordered by status prevails
and this order is observed (Hofstede, 2001).
• Thus even in case of negative information
about the celebrities, if the celebrity is on a
high pedestal, it will not result into significant
degradation of his/her power base.
• The congruence between the celebrity and
consumer, built over the years, sustains due to
longterm orientation of culture. Ultimately in
such cases, negative impact on brand
endorsement by celebrities will be lesser in
countries like India.
• Moreover, even in case of negative impact, the
process would be much slower, due to high
power distance in the society, thereby
reducing the impact.
Raymond Weil paid Charlize Theron to wear
only his watches for two years. During this
time, Theron also had a contract with Dior
perfume, and was seen at an event wearing a
Dior watch.
The Muscles from Brussels agreed to shoot a
commercial for Total Flex home gym
equipment, but when he showed up to the
set, he allegedly hadn’t learned his lines or
how to use the equipment.
11/06/2014
67
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

68.
• For example, Air Jordan's generated
revenue sales of $130 million in the first
year. The sales dropped miserably in the
second year when Jordan missed 62 games
due to a broken foot. (celebrity credibility).
• Provogue was a brand which used Fardeen
Khan as its brand ambassadors. The brand
ran into trouble when Fardeen was booked
for a drug related case.
• Sania Mirza endorses GVK Industries,
Sahara, Atlas Cycles, Tata Tea and Sports
Authority of Andhra Pradesh. Seeking
Mirza's services for endorsements were
companies from categories like cola, mobile
handsets and services to apparel, footwear
and personal care
11/06/2014 68
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

70.
• R. Bruce Money, Terence A. Shimp, Tomoaki
Sakano (2006) studied the impact of
negative information of celebrity on brand.
They conducted comparative study in the
U.S. and Japan to investigate whether the
form of negative information about a
celebrity (other- or self-oriented) results in
differential evaluations of the brand
endorsed by the celebrity. Surprisingly, the
study found that both Japanese and
Americans view endorsed products more
positively in the presence of self-oriented
negative information, a possible suspension
of the famous fundamental attribution
error in human judgment.
• Woods’ TV ads were 23% less effective than
average, and Americans in general,
regardless of gender or age, were equally
unreceptive to his ads.
Lance Armstrong – doping charges
Lady Gaga – flesh of dead animals
Kenny Mayne – awful announcement11/06/2014 70Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

72.
• Siyaram Silk Mills Ltd. (Siyaram), one of India's
leading textile companies, was also affected
badly by South African Cricket Captain Hansie
Cronje match fixing controversy.
• Pepsi Cola’s series of debacles with three
tarnished celebrities – Mike Tyson, Madonna and
Michael Jackson.
• McDonald's and Nutella both dropped Bryant
from their roster of celebrity endorsers after his
arrest in sexual assault case.
• Moreover, even in case of negative impact, the
process would be much slower, due to high
power distance in the society, thereby reducing
the impact. Thus, author propose
11/06/2014 72
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

73.
P5: In case of negative news about a celebrity, its impact on attitude
towards celebrity will be less negative in a society having higher power
distance and long term orientation in comparison to a society having lower
power distance and short term orientation
Popularity of
celebrity
Society of High
PD & LTO
Attitude
towards
Celebrity will
be more
Positive
PD & LTO
PD I M UAI LTO
US 40 91 62 46 29
India 77 48 56 40 61
11/06/2014 73
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

74.
P5: Supporting
facts
• Some of the celebrity endorsers like cricket
players Mohammed Azharuddin and Ajay
Jadeja were dropped by their respective
brands after being dragged into the betting
controversy, most of the times in India, the
celebrity endorsers continue to enjoy the
confidence of brands even in case of
negative publicity.
• Salman Khan who inspite of involved in
cases like shooting down the endangered
black buck or allegedly mowing down
people who were sleeping on a Mumbai
pavement, has appeared for brands like
Perfetti’s Chlormint, HUL’s Wheel, and
Sangini jewellery.
• When Saurabh Ganguly, the then Indian
cricket captain was dropped from the team
and has been struggling to make a
comeback, Pepsi decided not to drop him
from the advertisements.
11/06/2014 74
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

75.
• Despite jail term, Gitanjali to
continue featuring Sanjay Dutt in its
ads. Sanjay Dutt, who faces a jail
sentence of five years, will continue
to twinkle in Gitanjali's Sangini
diamond brand campaigns along
with wife Manyata for another two
years.(ET April 8, 2013).
• Thus one can surmise that even
when celebrity endorsers go
through a bad patch which may lead
to a drop in their star power,
companies continue their
association.
11/06/2014 75
Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore

76.
The Way Forward
• The purpose of this paper was to review and
synthesize the literature on celebrity
endorsements in the light of widely differing
practices in nature and quantity of use of the
phenomena between developed and emerging
markets and to develop a set of propositions that
explain the difference using the lens of culture.
• The propositions explained in earlier section
need to be empirically verified before they can
be generalized.
• Nevertheless, within the above constraints, the
author paper contributes to the literature by (a)
bring in the notion of congruence between the
celebrity and the consumer as a driver of
effectiveness of celebrity endorsements and (b)
by offering propositions using the dimensions of
culture (like individualism-collectivism, power
distance and long term orientation) to suggest
ways in which this congruence manifests itself.
11/06/2014 76Dr. Chandan Chavadi, Associate Professor,
Presidency Business School, Bangalore